What Governments Can Do to Support their Economies: The Case for a Strategic Econsystem

Abstract

More than half a decade after the outbreak of the greatest economic crisis since the Great Depression, the world economy is still facing serious difficulties. Much more than during a 'normal' recession, the Great Recession of recent years has uncovered serious structural problems in the world economy and has brought about levels of unemployment unprecedented in modern times (Elsby et al. 2010). It first became clear that the financial sector had become in effect self-referential and too much removed from its traditional role of allocating finance throughout the whole economy (Menkhoff and Meyer, 2010). Following this, the structural weaknesses of the Euro were exposed leading to serious questions about the long-term sustainability of the most ambitious currency union ever attempted. Policy Implications• The on-going economic crisis has shown that the constitution of different political economies and government involvement are key to creating resilient and sustainable economies.• In particular, the important SME sector is dependent on a supportive economic framework.• Economic policy-making needs to be embedded in a broader analytical framework.• The 'strategic econsystem' approach offers such a framework that allows us to capture and examine all policy-relevant aspects.

Introduction to the Special Section: Policy Instruments for Innovation, Investment and Global Trade

“…A supportive economic environment, the coherent interplay in a 'Strategic Econsystem', is capable of adapting to the needs of exporters (Meyer and Klasen, 2013). From a government perspective, it is important to present a concise national strategic framework to leverage opportunities and impact.…”

“…There is strong evidence that effectively managing the interaction of government entities involved in trade, FDI and innovation is key to crafting sustainable and responsive economies. A supportive economic environment, the coherent interplay in a 'Strategic Econsystem', is capable of adapting to the needs of exporters (Meyer and Klasen, 2013). Al-Shakar is looking at these elements as well as linkages of the entrepreneur ecosystem and the strategic econsystem with a particular focus on financing in Bahrain.…”

Introduction to the Special Section: Private Investment and Public Funds for Climate Finance

“…Boosting sustainable behaviour in growing economies is often related to national and often singular actions. However, just as economic policy‐making needs to be embedded in a broader analytical framework (Meyer and Klasen, ), environmental initiatives work best when included in a comprehensive policy framework. Crucial questions, which need answering, are how to implement renewable energy systems, how to integrate biodiversity into business activities and a country's economic growth path, and how to unlock means for climate finance.…”

Three Essays on Export Promotion Services and Systems: Overcoming Export Barriers

“…Some examples are presented by Meyer and Klasen (2013) in their work about governments' role in supporting their economies.…”